DAX FUTURES ANALYSIS 16/06/2017
The sharp correction seen yesterday puts pressure on the bulls but there is still no decisive breakdown of the positive outlook.
On the day that the June contract expires, we turn to the September U7 contract.
This means that yesterday’s low at 12,610 becomes a key level of support now.
A strong bear candle increases the downside pressure now, but the rebound from the low has stemmed the selling tide for now.
Daily momentum indicators have reacted to yesterday’s candle and ticked lower but as yet there is no significant downside deterioration.
The daily RSI remains above 50 and MACD lines are still relatively flat.
It would need another bear candle today and a move (preferably close) below 12,610 to really generate downside impetus.
The hourly chart shows an early gap higher from 12,700 whilst hourly momentum is pulling higher again.